1. Field of the Invention
The present invention generally relates to a storage bin and method of use. More specifically, the present invention relates to a storage bin for storage of flowable materials, which include, but are not limited to, proppant used in hydraulic fracturing operations.
2. Description of Related Art
Hydraulic fracturing is widely used in the oil and gas industry to enhance recovery of oil and natural gas. Commonly known as “fracking,” hydraulic fracturing is the propagation of fractures in a rock layer by a pressurized fluid. Hydraulic fractures are formed by drilling wellbores into reservoir rock formations and injecting large volumes of fracking fluid under high pressure into the wellbores to create fractures in the rock formations. The injected fluid includes proppant, which is a material, such as grains of sand, ceramic, or other particulates, that keeps the fractures “propped open” when the injection is stopped, thereby allowing oil or natural gas to flow from the formations to the wellbores.
Along with the rapid expansion of hydraulic fracturing operations, the proppant market has grown so fast that field operators, services providers, and material suppliers are struggling to keep up. Managing the proppant supply chain has been one of the biggest challenges facing the proppant market, as the typical proppant supply chain is hundreds, if not thousands, of miles long.
In addition to the long transits, the current process used to deliver proppant to a consumer is subject to many problems that disrupt the efficient flow of proppant to the wellhead. Mines and manufacturing facilities are unable to ship proppant to shale regions that lack adequate transloading and storage facilities on the receiving end of the supply chain. Such transloading facilities must be available to store proppant and transfer it from rail cars for shipment to well sites. If storage facilities are lacking, as they often are due to the high cost of such facilities, significant costs are incurred when proppant is held in railcars. Current rates for rail demurrage are approximately $80 per car per day and nearly double this figure for railroad-owned cars.
Limited storage at transloading facilities has severely limited the efficient operation of these facilities. Service companies are held captive by the current proppant delivery process, as they cannot frack wells without a supply of proppant. As a result, some companies have invested in expensive vertical silo storage facilities to store proppant. A typical silo must be able to store at least 1,500 tons—the approximate minimum amount of proppant needed to tap a single well. A large-scale storage facility may have capacity for 18,000 tons of proppant, which is enough for seven to twelve wells. These silo storage facilities are permanent facilities and require a tremendous investment of time and money to build such storage facilities.
The result of utilizing current storage processes and facilities is the expenditure of hundreds of millions of dollars nationwide in largely unnecessary logistics costs. Such costs result in lost revenue and productivity for mine owners and proppant manufacturers, as well as higher prices for proppant buyers in the destination region.
Currently, a need exists for an inexpensive storage solution for proppant, improved efficiency of the transloading process, and reduced rail and/or truck demurrage charges. Additionally, affordable storage facilities are needed that can be quickly erected and easily taken down or moved if desired.
In view of the foregoing, it is apparent that a need exists in the art for a storage bin and method of use which overcomes, mitigates or solves the above problems in the art. It is a purpose of this invention to fulfill this and other needs in the art which will become more apparent to the skilled artisan once given the following disclosure.